S.R.M.M.C.T.M Tiruppani Trust v. CIT

230 ITR 636Supreme Court of India1998#2163 most cited

What is S.R.M.M.C.T.M Tiruppani Trust v. CIT authority for?

Capital expenditure incurred by a trust from its own funds is considered an application of income, entitling the trust to claim exemption under Section 11(1) of the Income-tax Act.

54

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2010 to 2025.

Also referred to as

S.R.M.M.C.T.M Tiruppani Trust v. CIT · 230 ITR 636 SC · Section 11(1) exemption · capital expenditure application of income · charitable trust income exemption · trust funds application · income and expenditure account · own funds capital expenditure · application on capital assets · Section 11 Income-tax Act

Also reported as

96 Taxmann 635

Sections most often in play

Section 35(1)(ii)Section 35CCASection 115BBCSection 12AASection 133ASection 143(3)Section 148Section 263

Issues it is cited on

section 11(6)section 10(20a)section 10(46)section 115bbccorpus fundadvancement of general public utilityanonymous donationsection 11(1)(d)section 10(23c)(vi)section 11(4a)section 11(1)(a)section 11(1)

Judgments citing S.R.M.M.C.T.M Tiruppani Trust v. CIT

ATLANTIS IT SOLUTION,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX,6(2), MUMBAI

In the result, the appeal filed by the assessee is allowed

ITA 303/MUM/2025[AY 2015-16]Status: DisposedITAT Mumbai23 Apr 2025

Bench: Shri Sandeep Gosain & Shi Prabhash Shankaratlantis It Solution Vs Assistant Commissioner Of Income- 8, Engineer Building, Awabai Tax 6(2), Aayakar Bhavan, M.K. Kasahinath Tardeo, Mumbai- Road, Mumbai-400 020 400 034 Pan : Aalca6845 Appellant Respondent

For Appellant: Shri Neelkanth KhandelwalFor Respondent: Shri Ram Krishn Kedia, SR DR
Section 115BSection 12ASection 133ASection 143(3)Section 35(1)(ii)Section 35ASection 80G(5)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHI PRABHASH SHANKAR, ACCOUNTANT MEMBER Atlantis IT Solution vs Assistant Commissioner of Income- 8, Engineer Building, Awabai tax 6(2), Aayakar Bhavan, M.K. Kasahinath Tardeo, Mumbai- Road, Mumbai-400 020 400 034 PAN : AALCA6845 APPELLANT RESPONDENT Assessee by : Shri Neelkanth Khandelwal Respondent by : Shri Ram Krishn Kedia, SR DR Date of hearing : 09/04/2025 Date of pronouncement : 23/04/2025 O R D E R Per Sandeep Gosain(JM) : The Only effective ground raised by the assessee relates to challengi…

COMMISSIONER OF INCOME TAX vs. M/S JAMNALAL BAJAJ FOUNDATION

ITA/808/2017HC Delhi31 May 2024

Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA

Section 11Section 11(1)Section 11(2)Section 11(3)(c)Section 12ASection 142(1)Section 143(1)Section 143(2)

…its income and we find that the objects of the newly formed M. Ct. M. Chidambaram Foundation would fall within the scope of the purposes for which the income was accumulated. The Supreme Court in the case of S. RM. M. Ct. M. Tiruppani Trust v. CIT, [1998] 230 ITR 636, held that the amount spent for purchase of a property by the trust would amount to application of income as the building was used for charitable purposes. Applying the same ratio, the assessee-trust by handing over the money to the donee trust has directed the donee trust to apply the accumulated income for the purposes for which the Digit…

COMMISSIONER OF INCOME TAX vs. M/S JAMNALAL BAJAJ FOUNDATION

ITA-808/2017HC Delhi31 May 2024
Section 11Section 11(1)Section 11(2)Section 11(3)(c)Section 12ASection 142(1)Section 143(1)Section 143(2)

…its income and we find that the objects of the newly formed M. Ct. M. Chidambaram Foundation would fall within the scope of the purposes for which the income was accumulated. The Supreme Court in the case of S. RM. M. Ct. M. Tiruppani Trust v. CIT, [1998] 230 ITR 636, held that the amount spent for purchase of a property by the trust would amount to application of income as the building was used for charitable purposes. Applying the same ratio, the assessee-trust by handing over the money to the donee trust has directed the donee trust to apply the accumulated income for the purposes for which the Digit…

THE NEHRU MEMORIAL EDUCATION SOCIETY,KANHANGAD vs. ITO EXEMPTIONS, KANNUR

In the result, the assessee’s appeal is allowed

ITA 159/COCH/2023[2013-14]Status: DisposedITAT Cochin07 Mar 2024AY 2013-14

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmithe Nehru Memorial The Income Tax Officer Education Society (Exemptions), Kannur Lakshmi Nivas Vs. Kanhangad - 671315 Kasaragod [Pan:Aabtt0633M] (Appellant) (Respondent)

For Appellant: Shri P.M. Veeramani, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 10Section 11(1)Section 11(1)(d)Section 12ASection 143(1)Section 143(1)(a)Section 154Section 2

…o that it is income by definition, though exempt u/s. 11(1)(d)). It is for this reason that capital expenditure is equally an application of income, entitling exemption u/s. 11(1) on income derived from property held under trust (Tiruppani Trust v. CIT [1998] 230 ITR 636 (SC)). The assessee being not registered u/s. 12AA, it’s claim for exemption u/s. 11, or for it being a capital receipt, not in the nature of income, is misplaced and, accordingly, stands rightly disallowed on processing the return u/s. 143(1)(a). It’s plea for extension of subsequent registration, on the ground that rectification proceedings are…

CARMEL CONVENT ,THIRUVANANTHAPURAM vs. ITO EXEMPTION WARD, TRIVANDRAM, THIRUVANANTHAPURAM

In the result, the assessee’s appeal is partly allowed and partly allowed for statistical purposes, and it’s stay petition is dismissed

ITA 689/COCH/2022[2016-2017]Status: DisposedITAT Cochin07 Mar 2024AY 2016-2017

Bench: Shri Sanjay Arora & Dr. Seethalakshmi

For Appellant: Shri Anil D. Nair, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 11(1)Section 11(1)(d)Section 12ASection 143(3)

…an application of income. This would equally apply to capital expenditure incurred during the year. Without doubt, where financed by own funds, capital expenditure, as indeed revenue, would be an application of income S.RM.M.CT.M Tiruppani Trust v. CIT[1998] 230 ITR 636 (SC). (b) The set aside of current income for future application, which can be at a maximum of 15% thereof, is only for computing the total income for the year. It does not imply that the assessee is not obliged to apply the same in future. As such, a claim of excess application (?) is inconsistent with reserving 15% for future application; again…

THE BOMBAY SOCIETY OF THE SALESIAN SISTERS INDIA,WADALA MUMBAI vs. INCOME TAX OFFICER - 2 (4), MUMBAI

In the result, the appeal is allowed and the impugned order disallowing the exemption for assessment year 2016-17 is hereby set aside

ITA 2920/MUM/2023[2016-17]Status: DisposedITAT Mumbai12 Dec 2023AY 2016-17

Bench: Justice (Retd.) C V Bhadang, Hon’Ble & Shri B R Baskaran, Hon’Ble

For Appellant: Shri Mandar VaidyaFor Respondent: Shri Sunny Kachhwaha Sr.AR
Section 11(1)(a)

…11(1)(a) of the said Act. Reliance in this regard is placed on the decision of Hon’ble Gujarat High Court in Satya Vijay Patel Hindu Dharmashala Trust vs CIT, 86 ITR 683 (Guj) and the decision of the Hon’ble Supreme Court in S.R.M.CT.M Triuppani Trust vs CIT, 230 ITR 636 (SC) 8. It is submitted that even the owner of the building viz. SSSI, Chennai is also a charitable trust, and was engaged in the similar activity of conducting school. It is submitted that the object of both the trusts being similar, the ITA 2920/Mum/2023 The Bombay Society of the Salesian Sisters India building was handed over to the appellan…

M/S GIAN SAGAR EDUCATIONAL & CHARITABLE TRUST,,CHANDIGARH vs. DCIT, NEW DELHI

In the result, appeal of the assessee is allowed

ITA 3801/DEL/2016[2012-13]Status: DisposedITAT Delhi19 Oct 2023AY 2012-13

Bench: Shri C.M. Garg & Shri M. Balaganeshm/S. Gian Sagar Educational Vs. Dcit & Charitable Trust, Central Circle-29, Sco 10-110, Sector 43B, New Delhi Chandigarh (Appellant) (Respondent) Pan:Aaatg5827B

For Appellant: Shri Ravi Pratap Mall, AdvFor Respondent: Md. Gayasuddin Ansari, CIT DR
Section 115Section 115BSection 133(6)

…f Hon'ble Supreme Court in the case of DCIT vs. Maharaja Agrasen Technical Education M/s. Gian Sagar Educational and Charitable Trust Society in ITA No. 5245/D/2015 for Assessment Year 2011-12 S.RM.M.CT.M. Tiruppani Trust v. Commissioner of Income-tax [1998], 230 ITR 636 (SC) Commissioner of Income Tax v. M/s Muslim Educational Society ITA. No. 1711 of 2009 HC (Kerala). 5. Lastly, the ld counsel submitted that donations received by the appellant are not anonymous donations u/s 115BBC of the Act as the appellant has maintained complete particulars of the donors. Further, since the assessee has applied all its rece…

INFOPARKS KERALA,COCHIN vs. THE ACIT, COCHIN

In the result, the assessee’s appeals are partly allowed

ITA 77/COCH/2015[2011-12]Status: DisposedITAT Cochin11 Aug 2023AY 2011-12

Bench: Shri Sanjay Arora, Am & Shri Aby T. Varkey, Jm

For Appellant: Sri. Rajakannan, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr.AR
Section 11Section 11(1)Section 12ASection 143(3)Section 2(15)

…years claimed exemption u/s.11(1) on the entirety of it’s surplus as per the Income and Expenditure account (I&E A/c) on account of application thereof on capital assets/expenditure, admissible in view of, inter alia, S.RM.M.CT.M Tiruppani Trust v. CIT[1998] 230 ITR 636 (SC). The assessee, for the purpose, relies principally on it’s antecedents; it being set-up by Government of Kerala (GoK) as an independent entity to provide professional and 2 ITA Nos.75-77/Coch/2015 (AYs. 2009-10 to 11-12) Infopark Kerala v. Jt.DIT managerial support to it’s initiatives for the development of infrastructure for IT and IT-enab…

INFOPARKS KERALA,TRIVANDRUM vs. THE JT DIRECTOR OF IT (OSD) EXEM), COCHIN

In the result, the assessee’s appeals are partly allowed

ITA 76/COCH/2015[2010-11]Status: DisposedITAT Cochin11 Aug 2023AY 2010-11

Bench: Shri Sanjay Arora, Am & Shri Aby T. Varkey, Jm

For Appellant: Sri. Rajakannan, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr.AR
Section 11Section 11(1)Section 12ASection 143(3)Section 2(15)

…years claimed exemption u/s.11(1) on the entirety of it’s surplus as per the Income and Expenditure account (I&E A/c) on account of application thereof on capital assets/expenditure, admissible in view of, inter alia, S.RM.M.CT.M Tiruppani Trust v. CIT[1998] 230 ITR 636 (SC). The assessee, for the purpose, relies principally on it’s antecedents; it being set-up by Government of Kerala (GoK) as an independent entity to provide professional and 2 ITA Nos.75-77/Coch/2015 (AYs. 2009-10 to 11-12) Infopark Kerala v. Jt.DIT managerial support to it’s initiatives for the development of infrastructure for IT and IT-enab…

INFOPARKS KERALA,TRIVANDRUM vs. THE JT DIRECTOR OF IT (OSD) EXEM), COCHIN

In the result, the assessee’s appeals are partly allowed

ITA 75/COCH/2015[2009-10]Status: DisposedITAT Cochin11 Aug 2023AY 2009-10

Bench: Shri Sanjay Arora, Am & Shri Aby T. Varkey, Jm

For Appellant: Sri. Rajakannan, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr.AR
Section 11Section 11(1)Section 12ASection 143(3)Section 2(15)

…years claimed exemption u/s.11(1) on the entirety of it’s surplus as per the Income and Expenditure account (I&E A/c) on account of application thereof on capital assets/expenditure, admissible in view of, inter alia, S.RM.M.CT.M Tiruppani Trust v. CIT[1998] 230 ITR 636 (SC). The assessee, for the purpose, relies principally on it’s antecedents; it being set-up by Government of Kerala (GoK) as an independent entity to provide professional and 2 ITA Nos.75-77/Coch/2015 (AYs. 2009-10 to 11-12) Infopark Kerala v. Jt.DIT managerial support to it’s initiatives for the development of infrastructure for IT and IT-enab…

AYYAPPA SEVA SAMGHAM BOMBAY TRUST,MUMBAI vs. CIT (A)-53, MUMBAI

In the result appeal of the assessee is allowed for statistical purposes

ITA 135/MUM/2023[2017-18]Status: DisposedITAT Mumbai15 May 2023AY 2017-18

Bench: Shri Kuldip Singh & Shri Gagan Goyalayyappa Seva Samgham Bombay-Trust Plot No.185, Shree Ayyappa Temple Bangur Nagar, Goregaon (E) Mumbai-400 104 Pan: Aaata0312K ...... Appellant Vs. Cit (A), 53 634, Aayakar Bhavan, Mumbai-400 020 ..... Respondent

For Appellant: Shri S. C. TiwariFor Respondent: Smt. Shailja Rai CIT-DR
Section 11Section 115BSection 12ASection 133ASection 143(3)Section 263Section 69A

…chal Welfare Society “Shri Nikhil Agarwal, appearing for the respondent-assessee has relied on DIT (Exemption) v. Keshav Social & Charitable Foundation [2005] 278 ITR 152/146 Taxman 569 (Delhi) in which following S. RM. M. CT. M. Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 (SC) it was held that under Section 11 (1) every charitable or religious trust is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the charitable or religious trust to its charitable or religious purposes in India. This is, of course, subject t…

ACIT (E), CIRCLE- 2(1), NEW DELHI vs. NAV NIRMAN SEWA SAMITI, DELHI

ITA 6282/DEL/2017[2014-15]Status: DisposedITAT Delhi07 Feb 2023AY 2014-15

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 6282/Del/2017, A.Y. 2014-15 Acit(E), Vs. Nav Nirman Sewa Samiti, Circle-2(1), B N-9, Shalimar Bagh New Delhi (East), Delhi-110088 Pan : Aaaan6370R Appellant Respondent

Section 11Section 12ASection 143(3)

…Ld. CIT(A) has erred in law in allowing the claim of carry forward of application beyond 85% by relying on the judgements of Hon‟ble Supreme Court. While the facts of these two cases viz. S.R.M.M. CT.M. TIRUPPANI TRUST V. The Commissioner of Income Tax (1998) 230 ITR 636 and Addl. Commissioner of Income Tax V. A.L.N. Rao Charitable Trust (1995) 2016 ITR 69 are different from the present case and cannot be applied in this case. The appellant craves leave to add, to alter or amend 8. any ground of appeal raised above at the time of hearing.” 5. Heard and perused the record. 6. Ld. DR supported the orders of Ld. AO…

COMMISSIONER OF INCOME TAX, vs. SIKHYA\"O\"ANUSANDHAN

ITA/17/2015HC Orissa03 Jan 2023

Bench: The Itat Against The Respondent-Assessee For The Assessment Years (Ays) 2007-08 Till 2012-13.

Section 11Section 11(1)(a)Section 12

…t and that the imparting of education was for commercial motive and for making payments to ‘interested persons.’ 4. The CIT (A) came to the conclusion, following the decision of the Supreme Court of India in S. RM. M. CT. M. Tiruppani Trust v. CIT (1998) 230 ITR 636, that capital expenditure was also considered as an application of the profits of the entity and that expenditure incurred on the creation of infrastructure and building was permissible expenditure under Section 11(1)(a) of the Act. Reference was also made to the decision of the Delhi High Court in St. Lawrenence Educational Society v. CIT (…

COMNR.OF INCOME TAX vs. SIKHYA O ANUSANDHAN

ITA/34/2013HC Orissa03 Jan 2023

Bench: The Itat Against The Respondent-Assessee For The Assessment Years (Ays) 2007-08 Till 2012-13.

Section 11Section 11(1)(a)Section 12

…t and that the imparting of education was for commercial motive and for making payments to ‘interested persons.’ 4. The CIT (A) came to the conclusion, following the decision of the Supreme Court of India in S. RM. M. CT. M. Tiruppani Trust v. CIT (1998) 230 ITR 636, that capital expenditure was also considered as an application of the profits of the entity and that expenditure incurred on the creation of infrastructure and building was permissible expenditure under Section 11(1)(a) of the Act. Reference was also made to the decision of the Delhi High Court in St. Lawrenence Educational Society v. CIT (…

INCOME TAX OFFICER (EXEMPTIONS), WARD, JAIPUR, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 68/JPR/2022[2013-14]Status: DisposedITAT Jaipur21 Jun 2022AY 2013-14

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…sions is essentially the same. The said analogy also becomes clear from the fact that the Hon'ble Supreme Court in case of Queen Education Society has itself referred to and approved its earlier decision in case of S.R.M.M.C.T.M Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 which was rendered in context of section 11 while discussing the principle of accumulation and utilization of surplus for educational purposes in para 19 of its order as under: "...9. In the present case, the assessee is not claiming any benefit u/s 11(2) as it cannot, because in respect of this assessment year, the assessee has not…

INCOME TAX OFFICER (EXEMPTION),WARD, JAIPUR, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 67/JPR/2022[2012-13]Status: DisposedITAT Jaipur21 Jun 2022AY 2012-13

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…sions is essentially the same. The said analogy also becomes clear from the fact that the Hon'ble Supreme Court in case of Queen Education Society has itself referred to and approved its earlier decision in case of S.R.M.M.C.T.M Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 which was rendered in context of section 11 while discussing the principle of accumulation and utilization of surplus for educational purposes in para 19 of its order as under: "...9. In the present case, the assessee is not claiming any benefit u/s 11(2) as it cannot, because in respect of this assessment year, the assessee has not…

INCOME TAX OFFICER, JAIPUR vs. RAJASTHAN CRICKET ASSOCIATION, JAIPUR

In the result, appeal of the Department is dismissed

ITA 66/JPR/2022[2005]Status: DisposedITAT Jaipur21 Jun 2022

Bench: The Hon’Ble Tribunal In The Interest Of Justice.

For Appellant: Shri Shyam Lal Agarwal, CAFor Respondent: Ms Manisha Chandra, CIT fu/kZkfjrh dh vksj ls@
Section 11Section 12ASection 143(3)Section 147Section 148Section 2(15)

…sions is essentially the same. The said analogy also becomes clear from the fact that the Hon'ble Supreme Court in case of Queen Education Society has itself referred to and approved its earlier decision in case of S.R.M.M.C.T.M Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 which was rendered in context of section 11 while discussing the principle of accumulation and utilization of surplus for educational purposes in para 19 of its order as under: "...9. In the present case, the assessee is not claiming any benefit u/s 11(2) as it cannot, because in respect of this assessment year, the assessee has not…

SOCIETY FOR WELFARE AWARENESS RESEARCH AND GUIDANCE,DELHI vs. ITO (EXEMPTIONS), WARD 2(2), NEW DELHI

In the result, appeal of the assessee is allowed

ITA 4702/DEL/2019[2011-12]Status: DisposedITAT Delhi27 Apr 2022AY 2011-12

Bench: Shri R. K. Panda[Assessment Year: 2011-12]

Section 12ASection 133ASection 143(2)Section 147Section 148Section 68

…followed the view taken by Hon'ble Delhi High Court in the case of DIT (Exemptions) v. Keshav Social & Charitable Foundation [2005] 278 ITR 152/146 Taxman 569 and the judgment of the Hon'ble Apex court in the case of S.RM.M.CT.M. Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635, in which it was held that section 68 of the Act has no application in such cases where the assessee has disclosed donations as its income. 18. Similarly in the case of DIT v. Hans Raj Samarak Society [2013] 35 taxmann.com 642/217 Taxman 114 (Mag.) , their Lordships of the Hon'ble Delhi High Court has held that provisions of sectio…

ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTION) CIRCLE BHOPAL, BHOPAL vs. MAYANK WELFARE SOCIETY, INDORE

In the result, Revenue’s appeal for the AY 2013-14

ITA 776/IND/2018[2015-16]Status: DisposedITAT Indore29 Oct 2021AY 2015-16

Bench: Shri Manish Borad & Ms. Madhumita Royvirtual Hearing Assessment Year: 2013-14

Section 115BSection 143(3)

…Allahabad, in the case of (Exemption) v. Keshav Social & . Commissioner of Income Tax, Charitable Foundation [2005] 278 ITR Ghaziabad Vs. Uttaranchal 152/146 Taxman 569 (Delhi) in which Welfare Society. following S. RM. M. CT. M.Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 (SC) it was held that under Section 11 (1) every charitable or religious trust is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the charitable or religious trust to its charitable or religious purposes in India. This is, of course, subject t…

THE DCIT, (EXEMPTION) CIRCLE, BHOPAL vs. M/S. MAYANK WELFARE SOCIETY, BHOPAL

In the result, Revenue’s appeal for the AY 2013-14

ITA 232/IND/2017[2013-14]Status: DisposedITAT Indore29 Oct 2021AY 2013-14

Bench: Shri Manish Borad & Ms. Madhumita Royvirtual Hearing Assessment Year: 2013-14

Section 115BSection 143(3)

…Allahabad, in the case of (Exemption) v. Keshav Social & . Commissioner of Income Tax, Charitable Foundation [2005] 278 ITR Ghaziabad Vs. Uttaranchal 152/146 Taxman 569 (Delhi) in which Welfare Society. following S. RM. M. CT. M.Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 (SC) it was held that under Section 11 (1) every charitable or religious trust is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the charitable or religious trust to its charitable or religious purposes in India. This is, of course, subject t…

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